TRADE AND MARKETS.
Guatemala, because of its nearness, is an unusually good market for the
products of the United States. With the increase in the transportation
facilities which will result from railway building and other
transportation enterprises that will add to the ocean shipping
facilities the business should increase greatly if merchants and
manufacturers in the United States choose to take advantage of it.
Official support is given this view by the reports of the American
Consuls in Guatemala. Consul General Winslow has frequently called
attention to the advantages which may be obtained. In one report he
stated that large quantities of groceries, flour, potatoes, shoes,
drygoods, and clothing come from the United States, but Germany and
England seem to have the lead in machinery and hardware. There is surely
a fine opening in these latter lines for exporters of the United States,
but they must be in position to push their goods personally, to give
longer credits, and to take more pains with packing. In all, it is safe
to say, there are $8,000,000 of American capital invested in Guatemala
and there is an opening for much more, if it is backed by the right kind
of management.
In a report, to the British Foreign Office in 1905 Mr. Hervey, the
English Consul, stated that as far as actual volume of business was
concerned, as shown in the imports and exports, there appeared to have
been a distinct improvement in the general trade of the country compared
with immediately preceding years. The imports were the largest for the
past seven years. The revenue of the country showed a great improvement
all around, being, in fact, nearly double that of 1903, the most
important increases being shown in import and export duties, the former
benefiting by the 50 per cent. of their total payable in gold, and the
latter by the tax of $1 gold per quintal which has been collected
throughout the year.
The outlook for the future was, the report said, more favorable than it
had been for many years. The completion of the Guatemala Northern
Railway would shorten the distance from Europe and the United States and
promote trade. Already German and British steamers were calling at
Puerto Barrios in addition to those of the United Fruit Company. The
greater steadiness of exchange and the fall in the gold premium were
further factors of importance in restoring confidence. With continued
peace, and with it the prospect of increased labor facilities, so that
the agricultural and mineral wealth to be won from the soil may attain
to its fullest development, brighter days were dawning for Guatemala.
ARTICLES BROUGHT FROM OTHER COUNTRIES.
A general statement regarding the articles which Guatemala buys abroad
and which therefore are of interest to exporters is as follows:
The principal imports consist of drygoods, almost exclusively cotton
manufactures, brought from Great Britain, the United States, and
Germany. In this branch British manufacture commands the market, the
imports from the United States and Germany being relatively small. The
more important articles are gray cloths; bleached shirtings, 7-8 and 9-8
prints; fancy cloths; gray, white, and blue drills; colored drills;
handkerchiefs; gray and dyed yarns; Turkey red yarns; sewing cottons;
trimmings; cotton blankets, etc. Of these goods about 75 per cent. are
of British origin, 15 per cent. American, and 10 per cent. German.
American manufacturers compete chiefly in drills, denims, blankets,
prints, gray cloths, and bleached shirtings, while German goods imported
consist chiefly of drills, prints, Turkey red yarns, blankets, and
trimmings.
Woolen goods are not in very great demand; the principal lines are
blankets, shawls, braids, hats, Berlin wool, and but few piece goods.
Hats are imported mostly from the United States, Germany, and only a few
from the United Kingdom; shawls from Germany, principally; piece goods
from Germany, France, and the United Kingdom.
Silks are not in demand, excepting floss silks imported from China,
ribbons from Switzerland, France, and Germany. Regarding hardware
generally, approximately 50 per cent. is imported from Germany, 30 per
cent. from the United States, and 20 per cent. from the United Kingdom.
The principal imports from the United States consist of machetes, axes,
and hoes, besides tools generally of the better classes, corn mills,
plows, sewing machinery, outfits for building purposes, saws, barbed
wire, files, screws, cutlery, ropes, brushes, enameled goods, paints,
and varnishes and breadstuffs.
The imports from the United Kingdom are chiefly composed of
galvanized-iron sheets, galvanized-iron goods, coffee machinery, copper
sheets, tin goods, machetes, hoes, sickles, picks, pickaxes, saltpeter,
pans (used on sugar plantations), iron sheets, saws, padlocks, cutlery,
saddlery, bits, spurs, brass valves and cocks, pottery, cartridges, also
preserves and biscuits.
From Germany are brought all kinds of cheap tools, machinery, sewing
machines, cutlery, machetes, bar iron, enameled goods, pottery, locks,
screws, nails, window glass, brushes, paper, matches, stearin and
ceresin, part of these goods being also brought from Belgium and the
Netherlands, while France ships tools for shoemakers' and saddlers' use.
The articles which Guatemala buys in exchange for her coffee, sugar,
fruits, woods and other products in the customs classification are
divided into three groups; that is, articles of prime necessity,
articles of luxury or convenience, and articles for the industries.
The first and most important group includes cotton and woolen goods,
wheat flour, rice, corn, potatoes, salt, wax and stearine candles,
matches, soap, petroleum, glass and earthenware, and kitchen hardware.
The second group covers the finer grade of woolens, silks, mineral
waters, liquors, preserves in cans, manufactured tobacco, glassware,
porcelain, toys, musical instruments, perfumery, etc.
The third group consists of coal, woodworking machinery, cured hides,
raw cotton, sacks, lubricating oils, farm implements and a variety of
machinery.
CLASS OF IMPORTS FROM THE UNITED STATES.
The shipments with which up to this time the United States has been most
successful in furnishing Guatemala can be understood from a summary of
the articles sent out under a consular invoice from various ports. The
exportations from the port of New Orleans during a recent year were as
follows:
NAME OF ARTICLES. VALUE.
Linseed oil $168
Petroleum, etc. 2,534
Tar 255
Live animals 5,447
Rice 974
Empty barrels 116
Coal 185
Cement 422
Cistern materials 648
Dynamite 249
Drugs 1,972
Hardware 19,468
Cotton goods 45,733
Iron bars 338
Wheat flour 15,817
Surgical instruments 281
Locomotives 7,465
Earthenware 1,122
Manufactured woods, railroad ties, etc. 55,772
Indian corn 16,335
Malt 474
Cable rope 1,874
Gentlemen's furnishings 2,724
Gasolene motors 285
Furniture 657
Umbrellas 444
Provisions 23,127
Bridge material 18,794
Salt 2,136
Hats 452
Whiskey 978
Shoes 1,531
From the port of Mobile shipments were as follows:
Wheat flour $10,196
Cotton goods 9,916
Canned meats 2,108
Cornmeal 1,316
Hardware 804
Alimentary conserves 777
Butter 676
Beer in bottles 572
Petroleum 523
Vegetables 507
Coal 420
Hay 405
Dried fish 376
Footwear 362
Stearine candles 317
Matches 300
Condensed milk 238
Soap 228
Lard 206
Fruit preserves 204
Cheese 173
Rice 168
Miscellaneous food products 1,700
The exports from New York, which average about $75,000 per month, are
composed chiefly of the following articles:
Galvanized wire Lubricating oil
Alimentary articles Electrical equipments
Betum Iron pipes
Glassware Cured hides
Beer Drugs
Photographic material Hardware
Cotton goods Agricultural implements
Soap Jewelry
Earthenware Sewing machines
Railway material Medicines
Typewriters Miscellaneous machinery
Plated goods Perfumery
Paper Petroleum
Watches Weighing scales
Hats Whiskey
Chintz Leather ware
From the port of San Francisco the annual shipments amount to
approximately $1,000,000. The principal articles are flour, wheat, hops,
corn, barley, oats, cotton, furniture, machinery, beers, wines, and
whiskies. The articles imported at San Francisco are chiefly coffee,
sugar, cacao, rubber, hides and lumber.
HOW THE COMMERCE IS DIVIDED.
While the United States has a fair share of the trade the proportion is
not as large as it might be if systematic efforts were made. In the last
year for which statistics are available the foreign commerce of
Guatemala amounted to $12,593,000, of which $5,041,000 was imports and
$7,552,000 exports. Germany, which takes the bulk of the coffee crop, is
the largest consumer. In the year quoted it took 53.79% of the total
exportations from Guatemala North America (chiefly United States)
25.86%. England, 15.37%, and France 2.4%.
The exportation of the various countries to Guatemala in percentage
terms was as follows: United States 36.59%; England, 22.62%; Germany,
19.97%; France, 9.21%; South America, 2.82%; Central America, 1.83%;
Mexico, 1.69%; Spain, 1.54%; Italy, 1.32%; Belgium and Holland, 1.27%;
other countries, 1.14%.
In detail the value of the goods imported by Guatemala in the given
year was: from Germany, $1,019,000; United States, $1,442,000; England,
$1,038,000; France, $175,000; Belgium, $114,000. No other country except
the above exported to Guatemala goods exceeding $100,000 in value. Of
the exports from Guatemala, chiefly coffee, as previously stated,
Germany took $3,508,000; the United States $2,292,000; England,
$1,282,000.
President Estrada Cabrera in his annual message commented on the balance
of trade in favor of Guatemala and expressed himself very hopefully
concerning the measures of internal development which could be carried
on while the conditions of foreign commerce were so satisfactory.
Since a portion of the revenue of Guatemala is raised from the export
tax on coffee it is possible to maintain a very moderate schedule of
import duties and this is done. The average duty on the group of
articles described under the heading of prime necessity is 23.67% _ad
valorem_. On the second group 30.84% and on the third group 7.60%. The
duties are equitably distributed so as to bear lightly on everything
that enters into the industrial upbuilding of the country. Moreover,
special concessions are sometimes made on material for railway and other
enterprises which enter into the national development.
The general rules regarding the application of the tariff are very
clear. They are formulated with a view to saving annoyance to shippers
and are specific enough to avoid uncertainty. Import duties are not
high. The list of articles which it is prohibited to import is a short
one.
The charges for invoices on shipments to Guatemala are as follows:
Ship's manifest $10.00.
Validating invoices of from $1 to $100 7.00.
" " " 100 " 500 10.00.
" " " 501 " 1000 14.00.
" " " 1001 " 3000 16.00.
" " " 3001 " 6000 20.00.
For each additional $1000 the Consuls will collect $2.
The government officials of Guatemala and the merchants gave hearty
support to the project of an exposition ship or floating exposition
which was undertaken on the Pacific coast in order to display American
products and manufactures and at the same time familiarize American
firms with the products of other countries.
EXCHANGE AND BANKS.
In the conduct of its foreign commerce reasonably long credits are
required by the merchants of Guatemala, but always under fixed
conditions. When the coffee crop is shipped bills on Europe and on New
York can always be procured at reasonable exchange and the obligations
be met in this manner. Since the balance of trade is in favor of
Guatemala there is always the certainty of funds for exchange.
Under President Estrada Cabrera's administration the banks of the
country are subject to a regulation somewhat similar to the national
banks of the United States. Various decrees have been issued governing
the emission of banknotes. The latest decree institutes a special bank
examination project and requires all the financial institutions to give
an account of their condition and operations to this Department.
The following statistics as to the leading banks of Guatemala have been
compiled from recent reports:
GUATEMALAN BANK (BANCO DE GUATEMALA).
Capital subscribed and totally paid $2,500,000 00
Reserve fund 655,000 00
Contingent fund 292,208 67
Fund available for dividends 200,000 00
Manager: Carlos Gallusser.
OCCIDENTAL BANK (BANCO DE OCCIDENTE).
Capital authorized $2,000,000 00
Capital paid 1,650,000 00
Reserve fund 1,200,000 00
Contingent fund 1,200,000 00
Manager: Rufino Ibarguen.
INTERNATIONAL BANK (BANCO INTERNACIONAL).
Capital subscribed and totally paid $2,000,000 00
Reserve fund 1,507,000 00
Contingent fund 281,918 76
Manager: Carlos B. Pullin.
COLUMBIAN BANK (BANCO COLOMBIANO).
Capital paid $1,776,000 00
Reserve fund 797,747 94
Sinking fund 454,189 84
Fund available for dividends 69,227 74
Director: F. L. de Villa.
AMERICAN BANK (BANCO AMERICANO).
Capital authorized $1,200,000 00
Manager: A. Beckford.
AGRICULTURAL MORTGAGE BANK (BANCO AGRICOLA-HIPOTECARIO).
Capital authorized $12,000,000 00
Manager: A. Prentice.
All these are banks of emission and discount with headquarters in
Guatemala City and with branches in the other principal cities of the
departments. They also to some degree supply the place of mercantile
agencies and report financial standing of individuals, firms and
companies upon solicitation.
It is known to be the great ambition of President Estrada Cabrera to
place the finances of Guatemala on a solid basis during his present
term. The rate of exchange under the stability now afforded and the
improved industrial and commercial conditions has been steadily falling.
A final word concerning the opportunities for American enterprise is
convincing when it comes from official sources. In one of his reports
Consul General Winslow said:
"During the past few months the exporters of the United States have
been doing some effective work in this Republic. There have been
several commercial travelers here studying the conditions and
taking sample orders. Many others have been asking for information
from this Consulate-General, which has been able to give valuable
information. If this field is properly worked and sufficiently long
credit is given, practically nothing but American goods need be
found in the markets of Guatemala, for they are generally conceded
to be the best. This market is worth cultivating, for the next few
years will see great development here. Everything points that way,
and the natural resources are great. The opening up of the new
railroad to the Atlantic coast at Puerto Barrios will do wonders
for the country. More attention is being paid to the packing of
goods shipped to this country. It is an important matter and cannot
have too much attention on the part of exporters. Packages should
be very firmly nailed and bound by band iron, so they would be
difficult to open, as there is much complaint about goods being
stolen from boxes in transit. I have had several compliments of
late from the custom officers for the way shipments of American
goods have come packed. It will pay exporters to pack well
everything they ship. Dollars spent in this line will bring
hundreds in profits. This is especially true for Central American
ports."
Supplementary to the above was a report from Vice-Consul General Owen in
which these observations were made:
"The following drygoods of American manufacture are becoming quite
popular here: Brown cotton, all grades; cotton duck, Lindale, up to
6 ounces; light domestics; long cloth; gingham; cotton drill,
checks and stripes (cheviot); blue and brown cotton drill; fancy
calicoes and lawns; cotton ware, all colors. The piece of 24 yards
is the most popular, although cotton cheviots, gingham, etc., come
put up in larger pieces. Dress patterns in lawn and calico are
frequently imported.
"It must be borne in mind that the importers of this Republic are
for the greater part Germans, and their interest and inclination
lead them to trade with the fatherland. England also is preferred
over the United States, possibly because Guatemala merchants can
more easily identify themselves in England and get better credits.
American goods therefore are imported only when their quality
places them so far ahead of the European article that the merchant
is almost compelled to have them in stock. The American
manufacturers should become better acquainted with this trade,
ascertain who are worthy of credit, and extend it. The long voyage
and delay _en route_ compel the importer to ask long credits. It is
sometimes two or three months after shipments destined for this
city leave the manufacturer before they can be displayed in the
store of the importer. The custom duty on about all cotton goods is
collected on gross weight of the package. Great care should be
taken with invoices for custom-house purposes; the goods must be
described in exact phraseology of Guatemala custom tariff."